Syntax. ACCRINTM(Issue,Settlement,Nominal_Interest,Par_Value,Basis)
Definition. The function ACCRINTM() calculates the accrued interest of a debt due in full intra-annually or the accrued interest of a fixed-interest security with one interest payment per year.
Arguments
Issue (required) The date of the issue of the security.
Settlement (required) The date when the ownership of the security changes.
Nominal_Interest (required) The agreed-upon interest rate of the security based on one year.
Par_Value (optional) The nominal value of the security. If this argument is not specified, Excel calculates with 1000 monetary units (contrary to the information in Excel Help in Excel 2003 and earlier versions).
Basis (optional) Defines the method you want to use for determining the days in the year according to Table 15-2, shown in the section titled AMORDEGRC().
All function arguments that concern a date use the date without the time. In other words, fractions are rounded. The Frequency and Basis arguments also require integers and truncate decimal places.
If invalid dates are used or no numbers are entered where required, the function returns the error #VALUE!. If invalid numbers are entered for nondate arguments, the function returns the #NUMBER! error.
Background. This function is a simplified version of the function ACCRINT(). The difference lies in using only one given interest period, which is identical to one entire year (not necessarily a calendar year). Because of the similarities mentioned earlier, all applicable background information about ACCRINT() applies.
Examples. The following examples illustrate the function.
Debt Due in Full. The accrued interest from the example for the function ACCRINT() in the previous section is calculated with the formula
=ACCRINTM(C2,C3,4%,1000,4)
where C2 contains the issue date and C3 the date of the change of ownership.
Federal Government Bond. The German federal government bond WKN 113517 was issued on October 25, 2000, with a nominal interest rate of 5.5 percent and one interest payment per year, and it is callable on January 4, 2031.
On August 30, 2010, the price was €143.27. How much did the buyer have to pay (without fees) to purchase it?
When solving this problem, note that you cannot use October 25, 2000, as the issue date. Instead, you must use the day of the last interest payment: January 4, 2010:
=ACCRINTM(C24,C25,5.5%,100,4)
(C24 contains 4/1/2010, and C25 contains 30/8/2010). To the purchasing rate of €143.27 you still need to add €3.61 in accrued interest per bond section.